Section 280-RICR-20-20-15.5 - Calculation of the IncentiveA. At the end of the business' tax year, the employer claims the incentive for each employee who has been finally certified during that tax year by the Department of Labor and Training.B. The incentive is calculated using the W-2's for each employee to determine the "first year wages". Since the "first year wages" are the Rhode Island wages or Rhode Island salary of the newly-hired employee and actually paid by the business for a period of 365 days from the employee's first day of work, the W-2's for more than one year will be used.C. For most certified employee, the calculation involves: 1. the first W-2 for the employee's first year of employment;2. a determination of how many days of pay (of the mandated 365) were present during that calendar year;3. the W-2 for the employee's second year of employment;4. a determination of how many days remained (of the mandated 365) during that (second) calendar year; and5. a proration (or specific identification if details are available for review) to determine the remaining portion of the "first year wages".D. Depending upon the date of hire, the calculation of the "first year wages" may involve more than 2 years' W-2's for the certified employee.E. Once the "first year wages" have been determined, the employer must reduce that amount by any direct state or federal assistance received for that employee.F. The incentive is then calculated using Form 107 at forty percent (40%) of the employee's first year wages up to a maximum of $2,400 and the employer attaches a copy of the certification from the Department of Labor and Training for each employee claimed to the Form 107; attaches the Form 107 to the tax return being filed for that year and enters the incentive where appropriate in the tax calculation.280 R.I. Code R. § 280-RICR-20-20-15.5